JJC Copper Weekly Chart

The commodities weakness over the last couple weeks warrants attention. The copper weakness over the last seven days is also of interest now.  The 45.50 level is a bull-bear line in the sand identified by Keystone's algo where a drop under 45.50 will cause negativity in the broad indexes. The current print is 45.94.  Note the sideways symmetrical triangle/s in play. The indicators all reinforce this sideways vibe. Ditto the moving averages as they line out sideways.  Copper is going to make a very important decision as 2013 begins.  The move may be about ten handles, the vertical distance of the triangle in the September 2011 time frame.  Thus, a breakout higher, say from 46 would target 56-58, note the resistance from mid 2011 at 59.  A collapse out the bottom at say, 44 would target 32-34.

The chart is not tipping its hand moving forward but watch the mid points for all the indicators (red ovals) since any move above or below the centerlines will tell you who is winning. The RSI 52 is bullish, MACD is stone cold flat, stochastics are 54 and bullish, and the money flow is 47 bearish. Even these indicators cannot agree on the direction coming. Dr. Copper leads the markets.  In November, copper started upwards a few days before the markets bottomed in mid-November. Thus, the leader led higher.  Copper has leaked lower in recent days, hitting the top rails of the sideways triangles and receiving a spank down, so the coming days will show if copper is leading the markets to the downside, or not. Pay attention to the bull-bear line at 45.50, if that fails the liklihood of a failure thru the bottom trend line will increase greatly. Use the moving averages as gauges for the price movement as well. Copper should become very important in the days ahead. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.